Dehao Runda plans to sell some assets of its LED lighting subsidiary

On July 19, Dehao Runda released two news, selling some assets of its subsidiary Zongde Lighting, and increasing capital of its subsidiary North American Electrical Appliances. Dehao Runda sells some assets of its subsidiary Zongde Lighting Dehao Runda issued an announcement stating that according to the company's strategic development needs, in order to further effectively integrate resources, focus on the main business, and at the same time revitalize the company's idle assets and enhance the company's sustainable operating capabilities, the company plans to sell two land use rights and projects under construction held by the company's subsidiary Zongde Lighting through public listing through the Dalian Property Rights Exchange. This transaction is based on the evaluation report, and the first publicly listed transfer price is the assessed value of the underlying assets by the asset evaluation agency of 67.8342 million yuan. Information shows that Zongde Lighting was established in 2016. The company’s main business scope includes the research and development, production, sales, installation and technical consulting and technical services of LED products, lamps, electronic products, energy-saving and environmentally friendly products; LED display rental, etc. Dehao Runda increased its investment in subsidiary North American Electrical Appliances by RMB 96 million On the same day, Dehao Runda announced that it planned to increase its investment in subsidiary North American Electrical Appliances (Zhuhai) Co., Ltd. (hereinafter referred to as "North American Electrical Appliances") by RMB 96 million with its own funds, of which RMB 48 million will be included in the registered capital and RMB 48 million will be included in the capital reserve. After the capital increase is completed, Dehao Runda will hold 95.64% of the shares of North American Electrical Appliances. According to data, the business scope of North American Electrical Appliances includes sales of household appliances; research and development of household appliances; repair of daily appliances; manufacturing of lighting fixtures; sales of lighting fixtures; sales of household products; manufacturing of appliances; manufacturing of display devices; sales of display devices; production of gas appliances; Dehao Runda said that this capital increase in North American Electrical Appliances will help it optimize its financial structure and reduce its asset-liability ratio; at the same time, it can further promote the development of the domestic small household appliances business and improve the comprehensive competitiveness of the domestic small household appliances business, which has positive significance for the company's future development. After the completion of this capital increase, North American Electrical Appliances will remain a wholly-owned subsidiary of the company. It is worth noting that at present, Dehao Runda's main business includes small kitchen appliances and LED packaging business, mainly smart coffee machines. The LED chip and LED display business of Dehao Runda Company has been shut down.